Abstract
This study aimed to examine the impact of entrepreneurial orientation on firm performance through project success and moderating role of absorptive capacity. A deductive approach was used to test the model empirically. Primary data were collected at one point in time from employees of small and medium enterprises in the Kingdom of Saudi Arabia. 354 responses were used for final data analysis. The structure Equation Modeling (SEM) technique was used to analyze the hypothesized relationships by using the Smart PLS3. The findings indicate that entrepreneurial orientation has a significant impact on firm performance and project success also significantly mediates this relationship. Moreover, absorptive capacity moderates the entrepreneurial orientation impact on project success this relation becomes stronger in the presence of absorptive capacity. This study adds value to the literature and proves the mediating role of project success and moderating role of absorptive capacity. Practically, it highlights the importance of entrepreneurial activities for firm performance and project success.
Highlights
This study aimed to examine the impact of entrepreneurial orientation on firm performance through project success and moderating role of absorptive capacity
The measurement model was tested to establish the reliability of data through Cronbach Alpha and composite reliability value and validity was established through discriminant and convergent validity test through heterotrait-Monotrait ratio of correlation (HTMT) and average variance extracted method
Analysis was done by applying the structure Equation Modeling (SEM) technique, the result of the analysis revealed that entrepreneurial orientation has a significant impact on firm performance which means that companies with high entrepreneurial activities perform well
Summary
This study aimed to examine the impact of entrepreneurial orientation on firm performance through project success and moderating role of absorptive capacity. This study adds value to the literature and proves the mediating role of project success and moderating role of absorptive capacity It highlights the importance of entrepreneurial activities for firm performance and project success. Many organizations have moved towards project-oriented companies to deal with the increasingly competitive environment (Turner, 2009) The success of these projects plays a very crucial role in firm overall performance (FP) and growth. This study will help to understand that how project success will intervein this relationship and the contextual role of absorptive capacity as a moderator by empirically testing the model in the KSA context. This study will measure the moderating role of absorptive capacity on this relation
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